The Reserve Bank of Australia’s July meeting minutes show the board debated whether to hold the cash rate at 3.85% or lower it by 25 basis points. The majority opted to keep policy unchanged, arguing that slightly firmer-than-expected inflation and a still-tight labour market called for a more gradual approach; three cuts in four meetings would not, in their view, be consistent with a cautious easing cycle. A minority argued for an immediate reduction, contending that consumer-price growth appeared on course to reach, or even dip below, the 2.5% midpoint of the RBA’s 2–3% target band and that downside risks to global and domestic demand warranted faster action. The board agreed that further easing is likely over time but said decisions should await the quarterly CPI and additional employment data due in August. Members highlighted uncertainty stemming from U.S. trade policy, noting that Washington’s recent tariffs could dampen world growth and further slow Australia’s already subdued GDP. They also expressed concern about whether private-sector hiring will offset a cooling in public-sector employment. The Australian dollar edged lower after the minutes were released.